NEW YORK, Feb. 28, 2019
NEW YORK, Feb. 28, 2019 Wall Street firms have now drawn their attention towards cannabis as the industry continues to blare throughout the markets. RBC Capital Markets analyst Nik Modi said that U.S. cannabis sales are rapidly growing, as he projects that sales could top USD 47 Billion within the next decade, according to Business Insider. Additionally, the firm suggests that U.S. legal sales are expected to grow at a CAGR of 17% throughout the period. Modi even says that accelerating cannabis sales could potentially rival that of beer and wine sales. Nielsen Holdings, a U.S.-based data firm, also says that sales of alcohol are slowing down, however, the expansion of places that serve alcoholic beverages have expanded. Despite the development of the market, the expansion of services has grown at a faster rate compared to the slowing demand in sales. The ISWR and BDS Analytics recently said in a report that trends suggest that millennials are choosing cannabis-based products over alcoholic beverages nowadays as well. ISWR is warning alcohol companies that they will need to shift towards consumer trends in order to keep up with the transition as future investments from various sectors, in order to diversify their portfolios, are expected to be a major factor for the growth of the cannabis industry. Weekend Unlimited Inc. (OTC: WKULF) (CSE: POT), Emblem Corporation (OTC: EMMBF) (TSX-V: EMC), The Supreme Cannabis Company (TSX: FIRE) (OTC: SPRWF), Planet 13 Holdings Inc. (OTC: PLNHF) (CSE: PLTH), Terra Tech Corp. (OTC: TRTC)
Many alcoholic companies have already moved into the cannabis industry space to create cannabis-based beverages. Furthermore, the industry has also drawn the attention of other sectors such as the tobacco and healthcare industry. Within the alcohol and tobacco sectors, companies are investing into cannabis to combat their often slowing sales. On the other hand, the medical industry is diving into cannabis because research has shown that it effectively treats or aids conditions such as cancer, epilepsy, chronic pain, and inflammation. However, Modi says that the cannabis industry is expected to be driven by the growing, and widespread, adoption of recreational cannabis, particularly in sales of edibles and concentrates. "Driving the growth is recreational use of the product, particularly concentrates and edibles. Estimates already suggest that the US category alone is $50 billion, which compares to spirits $58 billion, wine $65 billion, and beer $117 billion," said Modi. "We think this is exactly the type of move that more companies should be making (not in cannabis necessarily, but having the foresight to invest in future revenue streams, especially at a time when the core business is performing)."
Weekend Unlimited Inc. (OTC: WKULF) (CSE: POT) is also listed on the Canadian Securities Exchange under the ticker (CSE: POT). Earlier this week the company announced breaking cannabis news that, "it has signed a letter of intent (LOI) with PPK LLC. to acquire vertically integrated operations in Wilburton, Oklahoma.
"We have strategically targeted Oklahoma, the state has moved faster than any other state in embracing the industry, and we see the business-friendly market translating into a consumer-friendly environment where the best brands will succeed for the long term," said Weekend President and CEO, Paul Chu.
The 7-acre property includes 20,000 ft2 of indoor facilities. Of the two main buildings, the larger 15,000 ft2 facility houses nursery/cultivation and extraction activities and includes a 1500 ft2 retail designated space for a concept store to be developed as a first location in Oklahoma. The smaller building 5,000 ft2 is targeted to be production and packaging for existing Weekend brand Canna Candys for distribution and sales in Oklahoma. PPK has secured licenses in Oklahoma for cultivation, processing, transportation and has applied for a retail license.
The Company's product focus for the Oklahoma medical market will be centred upon vape cartridges, dab rigs and candy products. The brand strategy will be scalable and expand to beverages, topicals and supplements.
Weekend will provide expertise, capital and the brands to generate growth in the Oklahoma medical market. The growth strategy will focus upon quality, trusted products for Oklahoma patients, leveraging experience in markets such as California to establish a leadership position in the new, evolving Oklahoma market.
Facilities are in final stages of preparation to begin production in mid-March. The company's sales team is active, and delivery of the initial products are expected by 1 April 2019.
Under the terms of the LOI, Weekend will acquire 51% interest in the Oklahoma operation in exchange for $5,610,000, which will consist of 50% cash and 50% shares. Weekend shall have the option to purchase the balance of the operation on terms to be determined. The transaction is subject to the usual closing conditions for transactions of this nature, including due diligence, board approval and compliance with exchange policies.
About Weekend Unlimited Inc. - Weekend Unlimited is capitalizing on its vast industry relationships to establish a lifestyle brand featuring premium products and delivering life's highest moments. The Company aggregates and scales small to medium brands, primarily in the categories of flower, extracts and edibles. Weekend Unlimited brands have best of class operations, distribution and strong revenue trajectories, making them ideal candidates for the deployment of capital and expertise through access to technologies, infrastructure and centralized systems. Learn more at www.weekendunlimited.com"
For our latest "Buzz on the Street" Show featuring Weekend Unlimited Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=dtsKTCDX2SI
Emblem Corporation (OTCQX: EMMBF) (TSX-V: EMC) is a fully integrated cannabis company focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Emblem Corp. recently announced that Emblem-branded cannabis oils are now available online through Shoppers Drug Mart to patients with a valid medical authorization. "As a patient-first provider, Emblem is committed to helping provide patients access to our products through distribution channels that provide both care and convenience like Shoppers Drug Mart," said Nick Dean, Chief Executive Officer, Emblem Corp. "Accessing a variety of distribution channels also continues to be a critical factor in our business strategy as we remain focused on being a leader in the medical cannabis space."
The Supreme Cannabis Company (OTCQX: SPRWF) (TSX: FIRE) is a Canadian publicly traded company committed to providing premium brands and products that proudly reflect its consumers, people and uniquely innovative culture. The Supreme Cannabis Company, Inc. recently announced that the Company's wholly owned subsidiary, 7ACRES, has entered into a supply agreement with the New Brunswick Liquor Corporation to supply recreational cannabis to its retail stores and has been registered as a supplier in the province of Saskatchewan. Saskatchewan and New Brunswick become 7ACRES' seventh and eighth provincial partners alongside British Columbia, Alberta, Manitoba, Ontario, Nova Scotia and PEI. "We're excited to announce that 7ACRES-branded products will be available for adult-use in eight Canadian provinces coast-to-coast," said Navdeep Dhaliwal, Chief Executive Officer of Supreme Cannabis. "In a short amount of time, 7ACRES has won multiple awards and received overwhelmingly enthusiastic consumer feedback. Our Company has made it a priority to expand 7ACRES' domestic distribution so that more Canadians will be able to experience our High-End CannabisTM products."
Planet 13 Holdings Inc. (OTCQB: PLNHF) (CSE: PLTH) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas. Planet 13 Holdings Inc. recently announced that it served 1,430 customers per day in December with an average ticket above stated expectations. Planet 13's TRENDI brand launched on November 12 with a focus on tourist customers. Demand for TRENDI has consistently exceeded supply, growing from ~1,700 units sold in November to over 5,000 units in December, resulting in a 260% month over month increase in revenue generated. The brand has 3 product types including disposable vapes and concentrates. The most popular product is a 0.3g Disposable Vape that caters to tourists who are only in Las Vegas for a short period and looking for a premium and discreet cannabis experience. Bob Groesbeck, Co-Chief Executive Officer of Planet 13 said, "We are very pleased with the trajectory of customer traffic and average ticket at the Superstore, having increased our December revenue and customer counts over November in what is always a seasonally slow period for Las Vegas convention and visitor traffic. With the Consumer Electronics Show kicking off a historically strong period on January 8th and our marketing efforts continuing to ramp-up, we expect to continue growing the number of customers served per day and amount of revenue generated.
Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Terra Tech Corp. recently announced that on November 2, 2018 it signed a non-binding letter of intent to merge with Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF), a cannabis company with cultivation, production and retail operations built around recognized brands. Under the terms of the letter of intent, a wholly owned subsidiary of Terra Tech will amalgamate with Golden Leaf, with the resulting amalgamated corporation being a wholly owned subsidiary of Terra Tech. Derek Peterson, Chief Executive Officer of Terra Tech, commented, "As new participants enter the cannabis industry the market is undergoing rapid consolidation. The companies that are vertically integrated with strong brands and multi-jurisdictional operations are best situated to achieve scale and retain market-leading positions. We are planning to merge with Golden Leaf's operations because its seed-to-sale business model is complementary to ours, encompassing both the Oregon and Canadian market which represent new markets for us, and touching Nevada where we are focused on gaining market share. Its 'Chalice Farms' retail dispensaries are well known and have an excellent reputation in Oregon, and the wholesale side of the business offers diverse, high quality cannabis products for all demographics, which are complementary to our existing wholesale product lines. This transaction, if completed, will create a combined company that will control 41 permits across cultivation, manufacturing, distribution and retail spanning Oregon, California and Nevada, in addition to 21 pending permit applications in multiple jurisdictions throughout the U.S."
Subscribe Now! Watch us report LIVE https://www.youtube.com/FinancialBuzzMedia
Follow us on Twitter for real time Financial News Updates: https://twitter.com/financialbuzz
Follow and talk to us on Instagram: https://www.instagram.com/financialbuzz
Facebook Like Us to receive live feeds: https://www.facebook.com/Financialbuzz/
FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.